All supply chain activity involves some degree of risk. identify six
Risk is an inherent part of any supply chain activity, and globalized supply chains are particularly vulnerable to risks due to their complexity. Potential sources and causes of risk in global supply chains include:
1) Natural disasters: The occurrence of natural disasters such as floods or earthquakes can heavily disrupt operations by damaging infrastructure or disrupting transportation routes thus resulting in delays for goods being delivered.
2) Political instability: Changes in government regulations or policies can significantly affect international trade leading potential losses from either currency fluctuations or sudden tariffs being imposed on certain products/services.
3) Poor communication: Incorrect information being exchanged between different parties involved process can result significant delays when it comes down coordinating activities across multiple countries plus it also presents possibility making wrong decisions based on inaccurate data.
4) Social issues: Rising labor costs or lack availability skills needed produce goods may lead suppliers having difficulty meeting demands customers thus meaning deliveries might not be completed time which could result significant disruptions overall.
5) Cybersecurity threats: With increasing digitalization there is a higher risk malicious actors attempting gain access sensitive information belonging businesses thus posing serious threat companies as well those working them should this happen successfully.
6) Supply & demand shifts: Rapid changes amount demand for certain products/services could catch companies by surprise leaving them unable properly adjust their strategies order cope with situation thus resulting financial losses overall.